Are you wondering what the crypto tax rate is in your country?
There's a common misconception in the web3 world that tax authorities have not provided any guidance about crypto taxes. However, we've dug in to learn exactly what the crypto tax rules are in each country.
And in this article, we will discuss what the cryptocurrency tax rates are for different transactions with a breakdown by country including:
- United States
- Australia
- New Zealand
- Canada
- United Kingdom
Crypto Tax Rates in the United States
The IRS treats cryptocurrencies as property rather than currency, leading to implications for both capital gains and income tax.
The tax rates for crypto trades are categorized into two main types:
- Short-term capital gains (STCG) for tokens held for <12 months
- Long-term capital gains (LTCG) for tokens held >12 months
The following crypto transactions are also subject to income tax in the United States*:
- staking
- airdrops
- forks
- mining
- cryptocurrency received in exchange for goods or services
*there is an ongoing case against the IRS which asserts that mining and staking rewards should not be taxed as income. But IRS guidance says it is income.
For individuals in the U.S., the capital gains tax rates align with their income tax brackets. Whether you are a single filer, or married-filing jointly also effects your crypto tax rate.
We have included the crypto tax rates for the United States in the tables below for the 2023 tax year.
Long Term Capital Gains Crypto Tax Rates:
|
Tax-filing status |
0% tax rate |
15% tax rate |
20% tax rate |
|---|---|---|---|
|
Single |
$0 to $44,625. |
$44,626 to $492,300. |
$492,301 or more. |
|
Married, filing jointly |
$0 to $89,250. |
$89,251 to $553,850. |
$553,851 or more. |
|
Married, filing separately |
$0 to $44,625. |
$44,626 to $276,900. |
$276,901 or more. |
|
Head of household |
$0 to $59,750. |
$59,751 to $523,050. |
$523,051 or more. |
Short Term Capital Gains cryptocurrency tax rates:
| Crypto Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
| 10% | $0 – $11,000 | $0 – $22,000 | $0 – $11,000 | $0 – $15,700 |
| 12% | $11,001– $44,725 | $22,001– $89,450 | $11,001– $44,725 | $15,701– $59,850 |
| 22% | $44,726– $95,375 | $89,451– $190,750 | $44,726– $95,375 | $59,851– $95,350 |
| 24% | $95,376– $182,100 | $190,751– $364,200 | $95,376– $182,100 | $95,351– $182,100 |
| 32% | $182,101– $231,250 | $364,201– $462,500 | $182,101– $231,250 | $182,101– $231,250 |
| 35% | $231,251– $578,125 | $462,501– $693,750 | $231,251– $346,875 | $231,251– $578,100 |
| 37% | $578,125+ | $693,750+ | $346,875+ | $578,100+ |
Crypto Income Tax Rates:
| Crypto Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
| 10% | $0 – $11,000 | $0 – $22,000 | $0 – $11,000 | $0 – $15,700 |
| 12% | $11,001– $44,725 | $22,001– $89,450 | $11,001– $44,725 | $15,701– $59,850 |
| 22% | $44,726– $95,375 | $89,451– $190,750 | $44,726– $95,375 | $59,851– $95,350 |
| 24% | $95,376– $182,100 | $190,751– $364,200 | $95,376– $182,100 | $95,351– $182,100 |
| 32% | $182,101– $231,250 | $364,201– $462,500 | $182,101– $231,250 | $182,101– $231,250 |
| 35% | $231,251– $578,125 | $462,501– $693,750 | $231,251– $346,875 | $231,251– $578,100 |
| 37% | $578,125+ | $693,750+ | $346,875+ | $578,100+ |
Crypto Tax Rates in Australia
In Australia, the Australian Taxation Office (ATO) classifies cryptocurrencies as an asset. This is similar to the U.S. approach and you will notice similarities below. However, the ATO has much easier to understand cryptocurrency tax rates which is reflected in the charts provided.
The tax rates for crypto trades are categorized into two main types:
- Short-term capital gains (STCG) for tokens held for <12 months
- Long-term capital gains (LTCG) for tokens held >12 months
The crypto tax rate for SCTG is the same as your income tax rate. But if you hold tokens for >12-months you may qualify for a 50% LTCG discount as an individual.
The following crypto transactions are also subject to income tax in Australia:
- staking
- airdrops
- forks
- mining
- cryptocurrency received in exchange for goods or services
We have included the crypto tax rates for Australia in the tables below for the 2022-23 tax year.
Short Term Capital Gains Crypto Tax Rates:
| Income | Crypto Tax Rate (short term) |
|---|---|
| $0 - $18,200 | 0% |
| $18,201 - $45,000 | 0 + 19% of excess over $18,200 |
| $45,001 - $120,000 | $5,092 + 32.5% of excess over $45,000 |
| $120,001 - $180,000 | $29,467 + 37% of excess over $120,000 |
| $180,001+ | $51,667 + 45% of excess over $180,000 |
Long Term Capital Gains Crypto Tax Rates:
| Income | Tax Rate |
|---|---|
| $0 - $18,200 | 0% |
| $18,201 - $45,000 | 0 + 9.5% of excess over $18,200 |
| $45,001 - $120,000 | $2,545.905 + 16.25% of excess over $45,000 |
| $120,001 - $180,000 | $14,733.24 + 18.5% of excess over $120,000 |
| $180,001+ | $25,833.05 + 22.5% of excess over $180,000 |
Crypto Income Tax Rates
| Income | Crypto Tax Rate (short term) |
|---|---|
| $0 - $18,200 | 0% |
| $18,201 - $45,000 | 0 + 19% of excess over $18,200 |
| $45,001 - $120,000 | $5,092 + 32.5% of excess over $45,000 |
| $120,001 - $180,000 | $29,467 + 37% of excess over $120,000 |
| $180,001+ | $51,667 + 45% of excess over $180,000 |
Crypto Tax Rates in New Zealand
New Zealand's Inland Revenue Department (IRD) treats cryptocurrencies as property for tax purposes. Similar to Australia and the U.S., crypto gains are subject to capital gains tax. However, New Zealand does not have a specific capital gains tax regime. Instead, cryptocurrencies are generally taxed under the country's income tax provisions.
Individuals in New Zealand are required to include their crypto gains as part of their taxable income. The tax rates for these gains correspond to the individual's income tax brackets, which range from 10.5% to 39%. It's important to note that these rates apply to both short-term and long-term gains.
So unlike in the US and Australia, there are no discounts for HODLing your crypto.
We have included the crypto tax rates for New Zealand in the table below for the 2022-23 tax year.
| Taxable Income : | Tax Rate |
| $1 - $14,000 | 10.5% |
| $14,001 - $48,000 | 17.5% |
| $48,001 - $70,000 | 30% |
| $70,001 - $180,000 | 33% |
| Over $180,000 | 39% |
Crypto Tax Rates in Canada
In Canada, the Canada Revenue Agency (CRA) considers cryptocurrencies as commodities, and their taxation falls under the purview of income tax rules. Crypto transactions, including trading and mining, are subject to taxation based on the individual's income tax rate.
Short-term gains, resulting from assets held for less than a year, are added to the individual's regular income and taxed accordingly, ranging from 15% to 33%.
Long-term gains, those arising from assets held for more than a year, are subject to a 50% inclusion rate. This means that only 50% of the gain is taxable, and the applicable tax rates align with the individual's income tax brackets.
We have included the crypto tax rates for Canada in the tables below for the 2023 tax year.
| Income Bracket | Tax Rate |
|---|---|
| Up to $48,535 | 15% |
| $48,536 - $97,069 | 20.5% |
| $97,070 - $150,473 | 26% |
| $150,474 - $214,368 | 29% |
| Over $214,369 | 33% |
Crypto Tax Rates in the United Kingdom
In the UK, cryptocurrencies are viewed as assets, which can lead to capital gains tax when they are sold or exchanged.
Like many other countries, airdrops, mining, and receiving crypto as payment are all subject to income tax rates.
For individuals in the UK, the capital gains tax rates on crypto gains vary based on their total taxable income, with rates ranging from 10% to 20% for basic rate taxpayers, and 20% to 28% for higher and additional rate taxpayers.
It's important to note that the UK provides a tax-free allowance known as the Annual Exempt Amount, which allows individuals to earn a certain amount of gains each year without incurring any tax liability.
We have included the crypto tax rates for the United Kingdom in the tables below for the 2023 tax year.
Capital Gains Crypto Tax Rates:
| Tax rate | Taxable income |
|---|---|
| 10% | Basic Rate Income Band (up to £50,270) |
| 20% | Higher Rate Income Band (up to £150,000) |
| 20% | Additional Rate Income Band (more than £150,000) |
Crypto Income Tax Rates:
| Income Bracket | Tax Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 - £50,270 | 20% |
| Over £50,270 | 40% |
Getting Help With Your Crypto Taxes
Would you love to get help so you can avoid overpaying on your crypto taxes? At Crypto Tax Made Easy we have two ways we can help.
Our done-for-you crypto tax service does all the heavy lifting and corrects the errors which cause crypto tax software to inflate taxable gains by 3-4x.
If you're more of a DIY person, our Crypto Tax Made Easy course shows you EXACTLY how to identify & solve all the issues that commonly inflate your taxable gains.